As described previously, restricted stock would not meet the readily determinable fair value criterion, unless the restriction terminates within one year of the reporting date. The fair value of restricted stock should be measured based on the quoted price of an otherwise identical unrestricted security of the same issuer, adjusted for the effect of the restriction, in accordance with ASC 820 (ASC 320-10-35-2). When an investor enters into an arrangement that limits its ability to sell securities otherwise subject to the provisions of ASC 320 subsequent to acquisition of such securities, those limitations are considered analogous to pledging the securities.
